Powell Industries Q1 Earnings Surpass Estimates, Increase Y/Y

Powell Industries, Inc.’s POWL first-quarter fiscal 2026 (ended December 2025) adjusted earnings of $3.40 per share surpassed the Zacks Consensus Estimate of $2.85. The bottom line increased 19% year over year.

Powell Industries’ total revenues of $251.2 million missed the consensus estimate of $257 million. However, the top line increased 4% year over year. The year-over-year increase was primarily attributable to strength in the electric utility and oil & gas markets.

Inside the Headlines

In the fiscal first quarter, revenues from the electric utility sector increased 35% year over year. The oil & gas sector’s revenues increased 2%. Revenues from the commercial & other industrial and petrochemical sectors declined 8% and 31%, respectively, on a year-over-year basis.

In the fiscal first quarter, new orders totaled $439 million compared with $269 million in the year-ago quarter. The increase was driven by robust order activity in the electric utility, commercial and other industrial sectors. Exiting the quarter, its backlog totaled $1.6 billion, up 14% on a sequential and 16% on a year-over-year basis.

Powell Industries, Inc. Price, Consensus and EPS Surprise

Powell Industries, Inc. price-consensus-eps-surprise-chart | Powell Industries, Inc. Quote

Margin Profile of POWL

In the fiscal first quarter, Powell Industries’ cost of sales decreased 1.2% year over year to $179.8 million. Gross profit increased 20% year over year to $71.4 million while the margin increased 380 basis points (bps) to 28.4%. Selling, general and administrative expenses were $25.2 million, up 17.2% year over year.

Operating income increased 20.2% year over year to $42.8 million. The operating margin was 17%, up 230 bps year over year.

Powell Industries’ Balance Sheet and Cash Flow

Exiting the first quarter of fiscal 2026, Powell Industries had cash equivalents and short-term investments of $500.8 million compared with $475.5 million at the end of fiscal 2025 (ended September 2025). Current liabilities were $401.6 million compared with $446.4 million at the end of fiscal 2025.

Stockholders’ equity totaled $668.9 million. In the first three months of fiscal 2026, capital expenditure totaled $2.03 million, down 7.3% year over year.

In the same period, the company used $3.2 million for distributing dividends, up 1.6% on a year-over-year basis.

Fiscal 2026 Guidance

Given Powell Industries’ robust backlog, solid liquidity and a strong balance sheet, it looks forward to witnessing solid revenues and earnings in fiscal 2026 (ending September 2026).

Dividend Hike

In conjunction with the earnings release, POWL increased the quarterly dividend rate by 0.9% to 27 cents per share (annually: $1.08).

POWL’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the same space are discussed below:

Nordson Corporation NDSN currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.

Flowserve Corporation FLS presently carries a Zacks Rank of 2. Flowserve’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has been stable.

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This article originally published on Zacks Investment Research (zacks.com).

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